Alphinity Socially Responsible Share Fund


The Alphinity Socially Responsible Share Fund holds a diversified portfolio of Australian stocks listed on the ASX.

Alphinity's investment approach is based on a combination of strong fundamental bottom-up research and targeted quantitative inputs aimed specifically at identifying mispriced companies likely to deliver earnings in excess of that expected by the market. The combined output of this fundamental and quantitative research is brought together in Alphinity's own proprietary Composite Research Model (CRM).

Labour standards and environmental, social and ethical considerations are taken into account when making investment decisions. A holistic approach is applied which includes analysis of companies' environmental, social and governance considerations (referred to as ESG considerations) within the framework of traditional investment and financial analysis.

Interests in the Alphinity Socially Responsible Share Fund are offered by Fidante Partners Limited ABN 94 002 835 592, AFSL 234668 (Fidante Partners). Fidante Partners has appointed Alphinity Investment Management Pty Ltd as the investment manager of the Fund.

Fund objective

To outperform the S&P/ASX 300 Accumulation Index after costs over rolling five-year periods.

Investment approach

Alphinity is an active core Australian equities manager who seeks to identify opportunities across market cycles. Alphinity believes that a company's earnings growth and expected earnings growth ultimately drive its share price performance and that there is a systematic mispricing of individual shares over the short to medium-term due to under-or-over estimation of a company's earnings ability.

PDS update of information - 1 July 2013

Introduction of the future of financial advice reforms

In April 2010, the Government announced the Future of Financial Advice (FOFA) reforms aimed at improving the quality and access to financial advice for Australian investors. The reforms are mandatory from 1 July 2013. Generally, the FOFA reforms introduce a duty for financial advisers to act in the best interests of their clients and prohibit the payment of conflicted remuneration to advisers and platforms.

We have reviewed our procedures to ensure we comply with the new FOFA requirements and this update is made to ensure you have the correct information about the fees and benefits we pay to platforms and advisers.

Please read the following update together with the relevant fund's Product Disclosure Statement (PDS) and Additional Information booklet (AIB) and relates to the 'Additional explanation of fees and costs' section in the AIB.

Introduction of the Future of Financial Advice Reforms (FOFA)

Under ESG considerations, stocks are subject to a three-step screening.

Update of information

Update to the buy and sell spreads 1 October 2014

Fidante Partners has reviewed the buy and sell spreads applicable to all Funds in light of recent sustained market movements of transaction costs. We have seen a consistent change in the level of transaction costs incurred across a number of the asset classes and have decided to change the buy and sell spreads applicable to the Fund from +0.30%/-0.30% to +0.20%/-0.20%.  These changes are effective from 1 October 2014.

Buy and sell spreads are determined and applied in the same manner as disclosed in the Fund's Product Disclosure Statement.

Changes to Goods and Services Tax (GST) from 1 July 2012

This update is to be read together with the Fund's Product Disclosure Statement (PDS) and Additional Information Booklet (AIB) and has been issued to update the PDS and AIB regarding GST changes that commence 1 July 2012.

All fees and costs expressed in the Fund's PDS and AIB are quoted inclusive of any GST and net of reduced input tax credits (RITCs) that are expected to be available to the Fund.

For acquisitions by the Fund before 1 July 2012, the prescribed RITC rate was 75%. Under recent changes to the GST law, acquisitions by the Fund from 1 July 2012 can attract RITCs at a prescribed rate of either 75% or 55 %, depending on the nature of the acquisition. The introduction of a lower RITC rate increases net costs disclosed in the PDS and AIB, which were calculated on the basis of a RITC rate of 75%. Fees stated in the PDS and AIB are rounded to two decimal places.

The information in this update is up-to-date at the time of preparation. However, some information can change from time to time. For updated information about the Fund, please contact your financial adviser, call our Investor Services team on 13 51 53 or refer to this website. We will also send you a copy of the updated information free of charge upon request. If a change is considered materially adverse we will issue a replacement PDS and AIB.

Update to the socially responsible investment process for the Fund

Corporate Monitor currently undertakes the socially responsible investment research for the Fund and provide a quantitative database of the social and environmental characteristics of listed Australian companies. This is an extensive, ongoing process that evolves as new information sources are incorporated.

The first step in the research process is a negative screening of industries that fail the socially responsive investment principles (generally on social, labour, environmental or ethical grounds) set by Corporate Monitor.  After receiving a number of queries in relation to uranium mining, Corporate Monitor was requested to confirm whether the negative screening process should continue to exclude companies involved in uranium mining and/or processing and power generation derived from nuclear fuels. Corporate Monitor has confirmed that such companies should no longer be excluded from the investment universe for the Fund. This decision is a response to the changing perception of uranium and nuclear energy which are now seen as a relatively clean source of energy compared to the traditional fossil fuel alternatives.

As a result of this change, the Fund will be able to invest in companies involved in uranium mining or nuclear power production within this Fund. 

For further information regarding the Fund, please refer to the current PDS.